e-government services online: an exploratory study on tax ...eprints.utp.edu.my/12048/1/e-government...

Dorasamy, M., Marimuthu, M., Raman., M., & Kaliannan, M. (2010). E-Government Services Online: An

Exploratory Study on Tax E-Filing in Malaysia. International Journal of Electronic Government Research,

6(4), 12-24.

E-Government Services Online: An Exploratory Study on Tax E-Filing

in Malaysia.

Magiswary Dorasamy*

Faculty of Management, Multimedia University,

Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia.

[email protected]

Tel: 603 83125707 Fax: 603 83125590

Maran Marimuthu

Faculty of Accountancy and Management,

University Tunku Abdul Rahman, Bandar Sg. Long Campus,

Lot PT 21144, Jalan Sungai Long, Bandar Sg.Long,

Cheras, 43000 Kajang, Selangor, Malaysia.

[email protected]

Tel: 603 90194722 Fax: 603 90197062

Dr. Murali Raman

Faculty of Management, Multimedia University Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia.

[email protected] Tel: 603 83125707 Fax: 603 83125590

Dr. Maniam Kaliannan

Faculty of Administrative Science & Policy Studies,

Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.

[email protected] Tel: 603 55444149 Fax: 603 55444131

mailto:[email protected]






6(4), 12-24.

E-Government Services Online: An Exploratory Study on Tax E-Filing

in Malaysia.

ABSTRACT

E-filing is a new service launched in the year 2005 by the Malaysian Inland Revenue

Board. This is in line with the government’s vision to leverage on the Internet technology

in extending its services to the citizens and to further embrace the cutting-edge

technology in the information age. Via this system, the citizens or taxpayers are able to

complete an electronic application form and the necessary payment details with a few

keystrokes and hence complete their revenue declaration within minutes. The purpose of

e-filing service is to encourage every taxpayer to submit their income tax returns through

an online system, thus reducing the manual paper-based submission method. This paper

examines taxpayers’ intention to use the e-filing system in Malaysia. The paper analyses

the factors that contribute towards adoption of such system in Malaysia based on three

models, namely, the Technology Acceptance Model (TAM), Diffusion of Innovation (DOI)

and Technology Readiness Index (TRI). Our findings suggest that taxpayers have

intention to use the e-filing systems as they perceive that tax submission method via

internet is more convenient than submission by post or by hand and that perceived

readiness towards using this technology is paramount to their belief for using e-filing

systems.

Keywords: e-filing, Malaysia, e-government, tax payers, online services,

1. INTRODUCTION

Tax filing whether done manually or via digital means is an important phenomenon for

most income earners and business entities. Governments worldwide are moving towards

utilizing the power of information, communication and technology (ICT) by embarking

into the new dimension which is electronic filing (henceforth referred to as e-filing).

Governments worldwide are leveraging ICT in many ways to tap the potential cost saving

and efficiency in providing online services to the citizens (Sahu and Gupta, 2007).

Malaysia too is in this bandwagon. However, low system acceptance by the end-users is



6(4), 12-24.

one of the major hurdles to the proliferation of e-government projects (Sahu and Gupta,

2007).

This paper discusses the relationship between four major factors that are affecting the

behavioural intention of tax e-filing systems users in Malaysia in adopting this method in

contrary to the manual submission method. Using three of the important theories on

assessing users’ behaviour against ICT system usage, Technology Acceptance Model

(TAM), Technology Readiness Index (TRI) and Diffusion of Innovation (DOI), this

study analyses and discusses the relationship between perceived ease of use, perceived

usefulness, perceived readiness, and complexity in using the e-filing system in Malaysia.

The academic nature of this paper stresses on how (ICT), manifesting itself in the form of

e-filing system, can enhance e-government efforts in providing fast and efficient service

to its citizens. The paper is written based on our involvement with prior work that

pertains to the use of e-government services. Understanding how and why people accept

or reject an information system has proven to be one of the most challenging issues in

information system research (Delone and McLean, 1992). Having invested huge amount

of capital in ICT for better info-structure and infrastructure, governments will benefit

from this nature of study to assess the intention to use and factors affecting the usage of

such systems.

Scope of Study

In Malaysia, the government’s Multimedia Super Corridor (MSC) project has been

instrumental in providing necessary platform for change or transformation. As one of the



6(4), 12-24.

seven MSC flagships, E-government will contribute to the nation’s rapid development. E-

filing in this context, is expected to be widely used by the Malaysian citizens. However,

despite all the efforts aimed at developing better and efficient tax filing system, the e-

filing system remained unnoticed by many citizens and still seriously underused in spite

of their availability (Wang, 2002). There is very little research done on this area due to

infancy of e-filing in Malaysia. This is due to insufficient evidence to date pertaining e-

filing system associated to Malaysian tax settings (Lai, Sheikh Obid, and Meera, 2005).

In fact, there was lack of ability to obtain certain information relevance on these studies

in Malaysia. In addition, there is still ambiguity on whether Malaysian tax practitioners

are prepared to embrace the e-filing system (Lai at al., 2005). Lai at al. (2005) examined

the level of technology readiness and intention to use among Malaysian tax practitioners.

This research reveals what and how Malaysians are in relation with the e-filing systems

adoption.

This study makes an attempt to examine the determinants of behavioural intention to the

use of e-filing systems in the case of tax submission in Malaysia. The significance of this

study is two-fold. First, this study provides vital information for government to identify

factors influencing taxpayers towards e-filing systems adoption. Malaysian government

will be able to use the result of this study as a guide to plan its strategies to improve the

usage level of e-filing systems. Since usage of e-filing systems is at present completely

voluntary, the challenge that Malaysian government has to face is to encourage the tax

payers to use online submission instead of manual submission by highlighting the

benefits of such systems and by making them realize the simplicity of the online process.



6(4), 12-24.

Second, this study has significantly integrated three theories to describe a new technology

acceptance, e-filing systems in the case of tax return submission among individual tax

payers in Malaysia.

2. E-FILING- THE MALAYSIAN CHAPTER

Initially, this application was introduced to corporate taxpayers in 2003 and later it was

expanded to individual taxpayers in 2004. The Inland Revenue Board (IRB), the agency

in charge for tax filing took this challenge to reshuffle the tax filing process by utilising

ICT to embrace an electronic income tax filing systems (Malaysian Institute of

Accountants (MIA), 2000). The intention of launching the e-government in Malaysia is to

pilot the country into the information age and to further guarantee the materialisation of

knowledge society.

Recently, the Inland Revenue Board (IRB) has surpassed its target on electronic

submission of e-filing returns forms. At the end of March 2007, there were 70,000 people

who sent in return forms through e-filing system compared to the previous year results

which is only 4,500 people used until end of March 2006 (Hamid, 2007). On April 30,

2007, nearing the deadline of tax return form submission, a total of 569,990 taxpayers

have sent in their return forms through e-filing system (Hamid, 2007). CEO of IRB,

Hasmah Abdullah, the nation top taxwoman had initially targeted 360,000 people to use

e-filing in year 2007 which is double of the previous year’s actual online tax returns,



6(4), 12-24.

180,000. (Hamid, 2007). There was a 60 percent rise to 1.2 million users in year 2008 as

compared to about 800,000 in year 2007 (“IRB confident of collecting,” 2008).

Based on senior officials from IRB, the 180,000 taxpayers have utilized the e-filing

systems in the last years can considered as a "good rate" (Hamid, 2007). The result

reveals that about seven per cent of total taxpayers had utilised e-filing systems when

newly introduced in Malaysia. In comparison with United Kingdom (UK), when the

system was newly introduced, UK could only achieve one percent usage rate among

taxpayers. Surprisingly, Malaysia has fetched far higher usage rate compared in the UK

(Hamid, 2007). The Deputy Finance Minister, Datuk Dr. Awang Adek Hussin anticipated

about 80 per cent of taxpayers to use e-filing system in the next five years (Hamid, 2007).

In the effort to boost the e-filing usage, the IRB officials made numerous visits to

companies and government departments nationwide to brief and enlightened the private

and public sector employees on how to use e-filing. In addition, handouts on how to

utilize the e-filing system were distributed in the shopping malls and public places.

Interestingly, the IRB has added a new feature to the e-filing system known as “e-

bayaran” or e-payment. The e-bayaran allows the taxpayers to pay tax online through

Internet banking for the account holders of the banks which are members of Financial

Process Exchange (FPX). This includes CIMB Bank, Public Bank, Hong Leong,

Maybank2U and Bank Islam.



6(4), 12-24.

The current development of e-filing system in Malaysia enables the taxpayers to submit

their tax return forms online conveniently and hence expedite the tax refunds if any. The

e-filing system provides easy, accurate, safe and fast processing compared to manual tax

return form submission. Another significant benefit for Malaysians is that the system

imposes no risk of lost of mails and produce high accuracy rate as the e-filing computes

the tax for taxpayers.

3. E-GOVERNMENT DEFINED

E-government refers to the automation of government-to-government and government-to-

citizen interactions (Dan, 2000). Collaborative software, broadband, and other supporting

web-enabled technologies are expected to help make transactions with government

agencies much faster and more efficient (Dwivedi and Irani, 2009). E-government is a

way for governments to use the new technologies to provide people with more

convenient access to government information and services to participate in our

democratic institutions and processes (State Service Commission (SSC), 2006).

Information technology (IT) initiatives in government services known as electronic

government, or e-government, are changing the way the government works and interacts

with citizens, businessmen, its employees, and other governments (Sahu and Gupta,

2007). The purpose of e-government is to bring people together and for that to happen,

the government must plan e-government in such a way that conventional means to access

to government are maintained for those people who need them; community access to the

Internet is available for those people who, for any reason, cannot access it from their



6(4), 12-24.

homes; educational and public information programmes are used to help citizens in using

the new technologies; review and strengthen where necessary, all legislation designed to

protect people’s privacy and provide safeguard around the sharing of people’s personal

information among government agencies.

The use of Information and Communications Technology (ICT) in general, has also

changed government service delivery process, business models and people’s expectations

of the quality and efficiency of information sharing and service delivery. Successful

implementation of various e-government initiatives worldwide (e.g. e-Seva and e-

Bhoomi initiatives in India, e-Citizen initiative in Singapore and e-firstgov.com in the

USA) are being touted as the next wave of creating innovative supply chain management

processes in the context of the civil/public sector worldwide (Maniam, 2007).

E-Filing System- Stylized Facts

E-filing or sometimes referred as eTax is a new service provided by Inland Revenue

Board (in Malaysia) to enable citizens or in particular taxpayers to complete an electronic

tax filing form and the necessary payment details via Internet. Fu, Farn, & Chao (2006)

define e-filing as an important application that automates tax related processes in an

attempt to improve efficiency in assessing and collecting tax information. The e-filing

service improves tax-filing service while reducing costs to both taxpayers and tax

collecting agencies and emphasizes the effective and efficient use of IT and networks to

achieve paperless culture (Fu, Chao and Farn, 2004).



6(4), 12-24.

Benefits of e-filing systems are five fold.

i. On time submission

The e-filing system encourages taxpayers to submit their returns on time, although

most of the submissions are done at the eleventh hour. Unlike the manual

submission, e-filing system improves the convenience and flexibility besides

providing ubiquity for users.

ii. Streamline procedures

The moment data or figures are entered in the system, it is sent to the central

database or server. Thereafter, the process of revision or refund can be carried out

efficiently and again the bottom line is speed.

iii. Provision of evidence

When someone makes an e-filing, the users will be receiving verification which

provides significant evidence that the IRB has received the return.

iv. Reduction in error rate in the tax returns processing.

According to the finding, over 18% of tax returns prepared on paper have

numerous errors, which mostly arise from miscalculations (Hwang, 2000). It is

proven that only 1% of taxes prepared electronically have errors (Hwang, 2000).

In tax years 1996 and 1997, the US tax statistical records demonstrated that the

preliminary error rate in e-filing tax returns is about 1% to 3% compared to

approximately 16% to 20% for paper filing returns (Wongtrakool, 1998). Other

experience showed that the error rate for electronically filed income tax returns

was less than 1% versus 20% for paper returns (Fletcher, 2002).



6(4), 12-24.

However, in the case of UK, Barnes and Vidgen (2007), in their survey on the users’

perception of online self-assessed tax return of UK’s Inland Revenue, found that the

system interactors indicated lower quality of the site. Key problems affecting the

perceptions of the interactive users are the usability of the self-assessment facility and

difficulty communicating with the organisation (Barnes and Vidgen, 2007). Age is also a

possible factor that can influence the adoption of new technologies such as e-filing

(Choudrie and Dwivedi, 2005; 2006). Nevertheless, the latest information from the Inland

Revenue shows that there has been a major increase in take up in the year ended April 5,

2003, when 329,420 users accessed the system to submit their tax return (Barnes and

Vidgen, 2007).

Global Scenario

Singapore is an excellent example on e-filing implementation. The Inland Revenue

Authority of Singapore (IRAS) launched in 1992 to remove the bureaucratic red tape by

restructuring the taxation system (Lim, Wee and Pan, 2007). The desirability of the e-

filing system was reflected in a 2001 survey where 94.1% of individual taxpayers, 89.6%

of corporate taxpayers, and 94.6% of goods and services taxpayers expressed high levels

of satisfaction with the refurnished tax services (Lim et al, 2007). Out of the 1,510,020

individual income tax returns issued for year 2007, close to 93 per cent of the year 2007

returns were received by the filing due date last year. This is a 1 per cent point

improvement from 92 per cent for year 2006 (Lim et al, 2007). By 31 March 2007,

https://www.researchgate.net/publication/220203358_Interactive_E-Government_Evaluating_the_Web_Site_of_the_UK_Inland_Revenue?el=1_x_8&enrichId=rgreq-3934f2925c16d46f3ed73f93954433e5-XXX&enrichSource=Y292ZXJQYWdlOzIyMDUyNjk4NztBUzozNDAxNjgwMDg1ODUyMTZAMTQ1ODExMzc4MTk0MQ==



https://www.researchgate.net/publication/288569309_The_demographics_of_broadband_residential_consumers_in_a_British_local_community_The_London_Borough_of_Hillingdon?el=1_x_8&enrichId=rgreq-3934f2925c16d46f3ed73f93954433e5-XXX&enrichSource=Y292ZXJQYWdlOzIyMDUyNjk4NztBUzozNDAxNjgwMDg1ODUyMTZAMTQ1ODExMzc4MTk0MQ==



6(4), 12-24.

1,462,017 returns were submitted, representing 96.8 per cent of the total returns issued

(Lim et al., 2007). The high compliance rate could be attributable to the ease of e-filing

through myTax Portal, the new “No-Filing Service”, and timely reminders to taxpayers to

file on time through publicity in newspapers and outdoor advertisements. As at the close

of the e-filing deadline of 18 April 2008, 87 per cent taxpayers e-filed their taxes, or close

to nine out of ten. This is a remarkable increase of 7 per cent points as compared with the

80 per cent who e-Filed last year.1

Taiwan is another well-known case in the e-filing plan with its online tax filing system

and tax tracking system. The online tax filing and payment system (OTFPS) allows

Taiwan taxpayers to submit tax returns using online ID and electronic transaction

authentication mechanisms. The OTFPS provides various reports on income tax

withholding (exemption) data, online filing and payment of general income tax, online

filing and payment of business income tax, online payment of business tax, and online

payment of taxes owed following a tax audit (Hung, 2006). Tax e-filing was launched

and available nationwide in 1998 with the usage of 18,000 to over 2.1 million

representing 43.5 per cent of total taxpayers in 2003 (Fu et al., 2006).

4. RESEARCH MODEL

This study was conducted using a quantitative-theory testing approach. A survey was

used as the instrument to gather data.

1 IRAS Annual Report, 2008



6(4), 12-24.

i) TAM (Davis, 1989), [which includes perceived usefulness (PU) and perceived

ease of use (PEOU) of the tax filing systems as operational measures]

ii) Technology Readiness Index (TRI) (Parasuraman, 2000) which is the base for

perceived readiness (PR) in this study.

iii) DOI (Rogers, 1995) were used by selecting only one of its construct which is

complexity (C).

Figure 1 illustrates the research framework that was used to develop the survey

instrument, which is an adaptation of three theories namely:

This study has attempted to analyze the behavioral intention of tax e-filing users’

perception by integrating constructs from Davis (1989) Technology Acceptance Model

(TAM), Rogers (1995) Diffusion of Innovations Theory (DOI) and Parasuraman (2000)

Behavioral

Intention

Perceived ease of

use

Perceived

Usefulness

Perceived Readiness

Complexity

H1

H2

H3

H4

Figure 1: The research model



6(4), 12-24.

Technology Readiness Index (TRI). Findings of TAM suggest that IT acceptance is

determined by person’s perceived usefulness (PU), the user’s “subjective probability that

using a specific application system will increase this or her job performance” (Davis,

1989; Venkatesh, Brown, 2001; Brown and Venkatesh, 2005) and perceived ease of use

(PEOU), “the degree to which the user expects the target system to be free of effort”. Fu

et al., (2004, 2006) pointed out that TAM is useful in evaluating application in

organisational context. It may not reflect the variety of user task environment beyond

organisational dimension. Given this backdrop, we hypnotize that:

H1 : Perceived Usefulness has a significant correlation with behavioral intention

of using e-filing in Malaysia.

H2 : Perceived Ease of Use has a significant correlation with behavioral intention

of using e-filing in Malaysia.

Through TRI, the technology-readiness construct refers to people’s propensity to

embrace and use new technologies for accomplishing goals in home life and at work

(Parasuraman, 2000). Four main components of TR are optimism, innovativeness,

discomfort and insecurity. This study had devised items from these components to

represent the construct perceived readiness which reflect the readiness of user towards

usage of new technology. Parasuraman (2008) ascertains that the extant literature

pertaining to adoption of new technologies and people-technology interactions strongly

suggests that consumers simultaneously harbor favorable and unfavorable views about

https://www.researchgate.net/publication/220260199_Model_of_Adoption_of_Technology_in_Households_A_Baseline_Model_Test_and_Extension_Incorporating_Household_Life_Cycle?el=1_x_8&enrichId=rgreq-3934f2925c16d46f3ed73f93954433e5-XXX&enrichSource=Y292ZXJQYWdlOzIyMDUyNjk4NztBUzozNDAxNjgwMDg1ODUyMTZAMTQ1ODExMzc4MTk0MQ==



6(4), 12-24.

technology-based products and services. The two components optimism and

innovativeness are the drivers of technology readiness, whereas discomfort and insecurity

are inhibitors. The perceived readiness is wider than TR (Chang, Ching and Chao, 2007).

The PR is kind of belief that is an individual's self-confidence in his/her ability to perform a

behavior (Bandura, 1977).In this context, we hypnotize that:

H3 : Perceived Readiness has a significant correlation with behavioral intention

of using e-filing in Malaysia

DOI theory sees innovations as being communicated through certain channels over time

and within a particular social system (Rogers, 1995). Individuals are seen as possessing

different degrees of willingness to adopt innovations (Rogers, 1995). The rate of adoption

of innovations is impacted by five factors: relative advantage, compatibility, trialability,

observability, and complexity (Rogers, 1995). This study only uses the complexity of

technology construct. The complexity is generally negatively correlated with rate of

adoption (Rogers, 1995). We dropped four other constructs under DOI as the emphasis of

our study is more on examining end user adoption of the e-filing system from a

technology acceptance and complexity dimension.

H4 : Complexity has significant a correlation with behavioral intention of using e-

filing in Malaysia.

https://www.researchgate.net/publication/22308002_Self-Efficacy_-_Toward_A_Unifying_Theory_of_Behavioral_Change?el=1_x_8&enrichId=rgreq-3934f2925c16d46f3ed73f93954433e5-XXX&enrichSource=Y292ZXJQYWdlOzIyMDUyNjk4NztBUzozNDAxNjgwMDg1ODUyMTZAMTQ1ODExMzc4MTk0MQ==



6(4), 12-24.

5. RESEARCH METHODOLOGY

Survey and Instrumentation

A self-administered questionnaire-based survey was conducted in Klang Valley. Klang

Valley is an area in Malaysia comprising Kuala Lumpur (the capital city of Malaysia) and

its suburbs, and adjoining cities and towns in the state of Selangor. It is the heartland of

Malaysia’s industry and commerce with the population of 5.2 million in 2006. The unit of

analysis is individual taxpayers. A total of 200 taxpayers’ responses were collected using

convenient sampling method. We used this sampling method to gather data in this study

for the following reasons. Firstly, the process of tax filing in Malaysia is kept confidential

by the Inland Revenue Department in Malaysia. In this context, we were unable to obtain

a sample frame that would allow us to proceed with randomization sampling method

based on probability structures. Secondly, given the unavailability of a proper sampling

frame and we needed to talk to Malaysians if they had used e-filing or otherwise, our next

best option was to administer the survey by talking to people on the street directly. Stated

differently, given limited access to privy information, we decided to use the convenient

sampling method.

The development of the constructs and the measures used to measure them were

consistent with the literature. The measurements for independent variables; perceived



6(4), 12-24.

ease of use and perceived usefulness were adapted from Davis (1989), whereas, input

items measuring perceived readiness (with wording changes from technology readiness)

were adapted from Parasuraman (2000), and input items for complexity of technology

were adapted from Rogers (1995). Measurements for behavioural intention were derived

from Davis (1989). The details of the measures for each constructs are given in the

Appendix 1.

The constructs were measured using a seven-point Likert-scaling with anchors ranging

from “strongly disagree” to “strongly agree”. The analyses encompassed descriptive

statistics, reliability test, correlations and regression.

6. RESULTS AND DISCUSSIONS

Demographic profile

As given in Table 1 below, in terms of gender, male accounted for 56 per cent and female

accounted for 44 per cent. The age groups; below 20, 21-30, 31-40, 41-50 and above 50

were 0.5 per cent, 39.5 per cent, 29 per cent, 17 per cent and 14 per cent respectively.

Meanwhile, 40 per cent (80) of the respondents were still single, 59.5 per cent (119) were

married and only 1 respondent (0.5 per cent) was divorced. In terms of education, 2 per

cent and 43 per cent of the respondents were from primary school secondary school, 39

per cent and 19 per cent were with bachelors and masters (or above) degrees. Where

income groups are concerned, 64 per cent of the respondents were earning up to RM50,



6(4), 12-24.

000, 22.5 per cent were earning between RM50, 000 and RM100,000 and only 4 per cent

were earning above RM100,000 in a year, however, 16 cases were considered as systems

missing.

Table 1: Demographic Profile

Profile Frequency Percentage (%)

Gender

Male

Female

Total

112

88

200

56.0

44.0

100.0

Age

<20

21-30

31-40

41-50

>50

Total

1

79

58

34

28

200

0.5

39.5

29.0

17.0

14.0

100.0

Marital

Single

Married

Divorced

Total

80

119

1

200

40.0

59.5

0.5

100.0

Education

Primary school

Secondary school

Bachelors degree

Masters and above

Total

4

86

72

38

200

2.0

43.0

36.0

19.0

100.0

Income (per year)

RM50,000 or below

RM50,001- RM100,000

> RM100,000

Systems Missing

Total

129

47

8

16

200

64.0

22.5

4.0

8.0

100.0

Statistical Analysis



6(4), 12-24.

Some important statistical techniques were adopted; reliability test, correlation and

regression analyses. The reliability test (Table 2) is essentially important to evaluate the

successfulness of the constructs considered in the study. The correlation results (Table 2)

reveal the relationships among the variables considered in the study and the regression

analysis explains the effect of the factors affecting the behavioural intention with regard

to e-filing operations.

The regression model is obtained using the OLS (ordinary least squares) estimators but

since, all the variables were strongly correlated, we even conducted a diagnostic test on

the multi-collinearity effect, and it was verified that the VIFs (Variance-inflating factors)

for all the four independent variables (PU = 1.66, PEOU = 3.15, PR = 2.87 and C = 1.40)

were within the acceptable range. Thus, the model shown below is free from multi-

collinearity effect.

Table 2: Reliability tests

Variables Cronbach’s Alpha No of items No of cases

Behavioural Intention (BI) 0.882 4 200

Perceived Usefulness (PU) 0.903 4 200

Perceived Ease of Use (PEOU) 0.915 4 200

Perceived Readiness (PR) 0.877 4 200

Complexity (C) 0.929 4 200

Table 2 shows that the Cronbach’s Alpha value for behavior intention is 0.882, perceived

usefulness is 0.903, perceived ease of use is 0.915., perceived readiness is 0.877, and the

value of complexity is 0.929. All of the constructs obtain Cronbach’s Alpha value is



6(4), 12-24.

exceeding recommended value of 0.70. Therefore, this signifies the measures used to

measure the constructs are relevant and these constructs can later be used for other types

of analyses (correlations and regressions).

Table 3: Mean, standard deviation and bivariate correlation results

Mean Std D 1 2 3 4 5

1.Behavioural Intention (BI) 5.09 1.36 1

2.Perceived Usefulness (PU) 5.39

1.18 .0704** 1

3.Perceived Ease of Use (PEOU) 4.83 1.27 .660** .621** 1

4.Perceived Readiness (PR) 4.64 1.32 .659** .543** .793** 1

5.Complexity (C) 4.67 1.37 .457** .380** .487** .510** 1

* p < 0.05, ** p < 0.01

The mean, standard deviations and correlation are coefficients shown in Table 3 above.

As for correlation analysis, behavioural intention is positively and significantly correlated

with all other variables at 0.01, but however, the strongest correlation is found with

perceived ease of use, (r = 0.660, p < 0.01). Though, even all independent variables are

significantly correlated, however, highest correlation coefficient exists between perceived

ease of use and perceived readiness (r = 0.793, p < 0.01).

Table 4 shows the regression model on the behavioural intention. It seemed that

Perceived Usefulness (PU) and Perceived Readiness (PR) significantly affected

behavioural intention at 0.01, meanwhile complexity was also found to correlate with

behavioural intention but at 0.1. Thus, we came to know that perceived ease of use did

not have any impact on behavioural intention though it appeared to be significantly



6(4), 12-24.

correlated with behavioural intention in the earlier discussion. Thus, hypothesis 1 and 3

are supported at 0.05, and hypothesis 2 and 4 are statistically not supported. Meanwhile,

the model is significant at 0.01(F-test = 2.456) and it seems 60.4 per cent of the variation

in the dependent variable (behavioural intention) is explained by the model.

Table 4: Regression results for predicting Behavioural Intention (BI)

Behavioural Intention (BI) Beta Adj R2 F

Constant -0.003 60.6 % 77.68***

(-0.010)

Perceived Usefulness (PU) 0.508***

(7.728)

Perceived Ease of Use (PEOU) 0.137

(1.613)

Perceived Readiness (PR) 0.277***

(3.581)

Complexity (C) 0.088*

(1.685)

* p < 0.1, ** p < 0.05, *** p < 0.01

t-statistics are given in parentheses.

Overall, the findings revealed that in order to attract more users to use e-filing systems, it

is not enough to develop a useful system. Developing a useful system is hence about

getting the technology ready for the public use. The real task is to attract more users to

use the e-filing system which touches the behavioural part of the users. This study

indicates that the paramount reasons that correlate with the intention to use of the e-filing

systems are that perceived usefulness where the use of this system will be beneficial for

users and perceived readiness reflects that users feel that they are somehow ready and

have knowledge to use the e-filing systems.



6(4), 12-24.

Based on these findings, government of Malaysia can use these two factors, the PU and

PR to formulate activities, strategies, campaign and policies to encourage the usage level

of tax e-filing systems. As suggested by TAM, PRI and DOI, these factors could improve

positive psychological inclination towards embracing new technologies and belief that it

be fruitful if being used whether it is for their personal or work use. Wang (2002)

recommends government authorities to employ training and promotion approaches to

develop people’s beliefs of usefulness, ease of use and credibility, which in turn influence

their behavioural intentional to adopt e-filing systems.

7. IMPLICATIONS

The findings of this study impacts both research and practice. Research on e-filing in

Malaysia is still at an infant stage given that the system was only introduced few years

ago. The model used in the study suggests that the constructs PU and PR are vital in

addressing e-fling adoption issues in Malaysia. These constructs and model therein

increases our understanding of e-filing utilization and adoption in the context of Malaysia.

This model can be used as a basis for future work. Researchers can incorporate other

dimensions or constructs into the model for example examining issues pertaining to

performance and effort expectancy (Schaupp and Carter, 2008; Ojha, Sahu and Gupta,

2009), personal innovativeness in information technology (Ojha et al, 2009), role of social

norms and value systems, as well as perhaps issues pertaining to regulation and government

incentives for using e-filing systems in Malaysia. Other studies can also examine e-filing



6(4), 12-24.

adoption issues with an emphasis on ascertaining demongraphic influnces (e.g. age, technology

access, income/education levels etc) on e-filing adoption.

In terms of practice, this study can be used by the relevant government authorities to

incorporate PU and PR issues in the context of larger scale systems implementation

within the broad-based e-Government initiative in Malaysia. Specifically, the Inland

Revenue department in Malaysia (Lembaga Hasil Dalam Negeri) should be aware that

greater acceptance of e-filing systems is influenced by citizens’ perception about

technology vis-à-vis is usefulness, and use. In addition the department must also

conceptualize how e-filing can be rolled out to rural areas in Malaysia where access to

and awareness of technology and e-filing is limited. In addition, vendors appointed by the

government in improving the e-filing system should ensure that all future enhancements

to the system in terms of its functionality and use, is kept relatively simple (Schaupp et al.

2008) to ensure that citizens can readily accept and use the system (Bandura 1977, Barnes, and

Vidgen, R. 2007).

8. LIMITATIONS

Several limitations must be addressed here. Firstly, the number of respondents is

insufficient. This study only collected 200 questionnaires and in a specific location which

is Klang Valley. This may not be sufficient to generalize the result to the overall

behavioural intention of Malaysian tax payers. Nevertheless, this is a preliminary study

which is aimed to role out the coverage to every e-filing tax payers in the future studies



6(4), 12-24.

with the cooperation of IRB. Secondly, the researchers understand that different working

groups may have different perception. Thus, this study may not be generalized for all

groups of workers and have different levels of involvement in ICT related services.

Future research should segment the respondents into different working groups and

different ICT knowledge level to extract more accurate scenario of e-filing intentions and

usages. Thirdly, application of DOI theory should not be limited to only one component

rather should include all the important components under this theory.

9. CONCLUSIONS

TAM, PRI and DOI are the central models tested in this research and have been

successfully integrated to predict and to understand the critical factors influencing the

taxpayers’ perception to accept or neglect the e-filing systems. The critical factors

included perceived usefulness, perceived ease of use, perceived readiness, and

complexity were examined and statistically tested in regards to identification of the

causal relationships with behavioural intention, divulged that the behavioural intention to

use the e-filing systems could be explained by perceived usefulness and perceived

readiness. The Constructs PU and PR have produced important implications for the

Malaysian government in successfully attracting the individual tax payers to effectively

make use of the e-filing systems. In conclusion, applying TAM, PRI and DOI to the e-

filing system studies could lead to an understanding of public acceptance to the system

and shed some light on research of the G2C e-government system in the future.



6(4), 12-24.

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Appendix 1

Behavioral intention

Perceived Usefulness

Perceived ease of use Perceived readiness Complexity

I intend to use Internet

facility for my income

tax submission.

Using electronic tax

filing systems enables me

to finish income tax

computation quickly.

Learning to use

electronic tax filing

systems would be easy

for me.

I have basic knowledge

and opportunities to use an


systems.

Electronic tax filing is

difficult to learn compared

to manual tax computation

methods.

Tax submission

method via internet is

more convenient than

submission by post or

by hand


filing systems can

improve income tax

computation more

accurately. (calculation is

computed by the system

itself)

I find that electronic

tax filing systems is

easy to use.

There is no barrier for me

to utilize electronic tax

filing.

Electronic tax filing is

difficult to utilize

compared to manual tax

computations methods.

I would like to

recommend electronic

tax filing systems to

my relatives and

friends


filing systems can

enhance income tax

computation efficiency.

E.g. save time and cost.

It is easy for me to

input and modify data

when I use electronic

tax filing systems

I have access to the

information and

instructions that I need for

using the electronic tax

filing systems.

Electronic tax filing

systems is difficult to set

up compared to manual tax

computations methods.

I will use other E-

government service

provide by

government. E.g.

check and pay traffic

summons.


filing systems makes the

income tax computation

easier.

The instructions

provisions for utilizing

an electronic tax filing

systems are clear and

understandable

I would be able to use


systems in irrespective of

time and location.

Electronic tax filing takes a

lot of efforts to learn.

The author has requested enhancement of the downloaded file. All in-text references underlined in blue are linked to publications on ResearchGate.The author has requested enhancement of the downloaded file. All in-text references underlined in blue are linked to publications on ResearchGate.